Context 158 - March 2019

C O N T E X T 1 5 8 : M A R C H 2 0 1 9 41 Highlands and Islands STEVEN TOLSON The cost and the value of heritage The refurbishment of older property is a challenge that many would say is best left to the experts or the insane. The Scottish Government, with its public partners, needs to step up. Oscar Wilde’s definition of a cynic (‘a man who knows the price of everything and the value of nothing’) is often used in property circles. Cost consultants are well qualified to advise on how much things will cost but how rigorously do we investigate the long-term investment value? People often say to me that there is more to value than money, but asset value does provide a good indication of wider worth which is much more than cash. Not thinking about investment value represents a potential blockage in getting more complicated things delivered. The refurbishment of older property is a challenge which many would say is best left to the experts or the insane. Unless one likes to gamble, the majority of people make financial decisions based on obtaining the best evidence and taking the safest possible route. When it comes to regeneration projects, particularly those that have a heritage element, assessing risk will be high on the agenda. The economics of land and property are determined by a range of factors. Markets can rise and fall, finance is available one day but not the next, politics change and behaviours change leaving a cloud of mystery which even algo- rithmic robotics will fail to predict. Changing circumstances often lead to market unease, making investors nervous of potential negative outcomes. So how do we smooth the negativity and generate greater confidence? Within Scotland the level of vacant and der- elict land and buildings has shown little sign of improvement in recent years. Public servants and academics debate what needs to happen to enable greater levels of activity. The fundamental question is one of confidence. Developers are unlikely to participate where there are easier opportunities and market demand is better understood. Funders get extremely nerv- ous if demand is unproven and constraints are unquantified. Risk has to be managed, but if you do not know what you are managing, financial people will be reluctant participants. It is not just about locational aspects but regenerating existing property carries greater risks than its new build counterpart and it is certainly not helped by an inequitable taxation policy. When markets perform well, confidence will be sufficiently high to offset or at least lower Inverness High Street and Town Hall (Photo: Enric, Wikimedia)